Costco Is Making a Major Change

There are countless things you can buy in bulk at Costco—diapers, guacamole, this giant bear—but fairly soon, tobacco will not be on the list.

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The discount emporium has been slowly phasing out cigarettes in the US.

Before you start praising the store for a waging a public health campaign, as tobacco sales continue to dip, Costco's choice to quit selling cigs is a financial one.

A Costco spokesperson told The Street, "Tobacco is a very low-margin business, tends to have higher theft and is labor intensive in some cases (due to local municipality regulations). Further, we felt we could better use the space to merchandise other items," he said.